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Cottage Grove, Tennessee: A Decade of Shifting Home Values and Ownership Patterns
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
Loading Content...
Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Cottage Grove, a small town in Tennessee, has experienced notable shifts in its housing market over the past decade. This quaint community has seen fluctuations in homeownership rates, average home prices, and average rent prices, reflecting broader economic trends and local dynamics.
From 2013 to 2022, Cottage Grove witnessed a significant decline in homeownership, dropping from 83% to 61%. Simultaneously, average home prices experienced a substantial increase. In 2013, the average home price was $116,082, which rose steadily to reach $219,061 by 2022, representing an impressive 88.7% increase over this period. This inverse relationship between homeownership rates and average home prices suggests that rising property values may have made homeownership less attainable for some residents.
The trends in homeownership rates appear to have been influenced by federal interest rates. For instance, the period from 2013 to 2016 saw relatively stable homeownership rates (around 81-83%) coinciding with historically low interest rates (0.11% to 0.4%). However, as interest rates began to rise more significantly from 2017 onwards, reaching 1.68% in 2022, homeownership rates declined more rapidly, falling to 61% by 2022. This trend aligns with the general principle that higher interest rates can make mortgages less affordable, potentially discouraging homeownership.
As homeownership declined, the percentage of renters in Cottage Grove increased from 17% in 2013 to 39% in 2022. Interestingly, average rent prices showed volatility during this period. The average rent was $487 in 2013, peaked at $700 in 2019, and then decreased to $634 in 2022. This fluctuation in rent prices, coupled with the increasing renter population, suggests a complex rental market affected by factors such as housing supply, local economic conditions, and population changes.
Looking at the most recent data, the average home price in Cottage Grove was $216,790 in 2023 and increased to $222,390 in 2024. This represents a 2.58% increase in just one year. Notably, federal interest rates also rose significantly during this period, from 5.02% in 2023 to 5.33% in 2024, potentially impacting housing affordability and market dynamics.
Applying predictive models to forecast 5-year trends, we can anticipate continued growth in average home prices, albeit at a potentially slower rate than observed in recent years. The average home price could reach approximately $250,000 by 2029. For rent prices, the trend suggests a potential stabilization or modest increase, possibly reaching an average of around $700 per month by 2029.
In summary, Cottage Grove has experienced a significant shift from a predominantly homeowner community to one with a growing renter population. This transition has occurred alongside substantial increases in average home prices and fluctuating rent prices. The interplay between federal interest rates, housing affordability, and local economic factors continues to shape the housing market in this Tennessee town, presenting both challenges and opportunities for residents and potential investors.
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